Napier council faces high costs

Last updated 05:00 21/11/2012

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Napier City Council has been told it has to return a leased office building to its former condition at a cost of $498,000.

This was revealed yesterday in High Court decision granting the council leave to appeal.

The cost relates to the second floor of Tourism House in Dickens St, which the council converted from a three-tenant office to a single space.

It leased the building until 2010, when landlord Cityscape NZ required the council to reinstate the floor to its original state. The council disputed the claim, and it went to arbitration.

Arbitrator John Marshall, QC, ruled in favour of Cityscape, and the council appealed.

The appeal will be heard next year in the High Court.

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- The Dominion Post

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